Obama Budget Spreads the Tax Pain

WASHINGTON—President Barack Obama's budget proposal would lead to significant tax increases on upper-income Americans, and also to moderate increases on some lower-income Americans, largely because of a new tax on tobacco products, according to an analysis by a Washington think tank.

The Tax Policy Center, a project run by the Urban Institute and the Brookings Institution, found that the budget plan would raise roughly $1.1 trillion over 10 years through a combination of limits on tax breaks, a tax on the banking industry...